HC orders restaurant to share profits for trademark violation

Chennai: In a setback to Geetham chain of restaurants, Madras high court has directed it to refrain from using a trademark similar to that of Sangeetha chain of restaurants and to pay profit earned between Jun 1, 2022, and Nov 2, 2023, by using such a trademark to Sangeetha. Justice Senthilkumar Ramamoorthy also imposed 10 lakh cost on Geetham to be paid to Sangeetha for court fees, lawyer's fee and expenses.The court passed the order on a suit moved by Sangeetha Caterers and Consultants LLP against Rasnam Foods Pvt Ltd and other owners of Geetham Veg restaurants seeking to permanently restrain Rasnam from using a trademark deceptively similar to its mark. According to Sangeetha, Rasnam and its associates were appointed as its franchise to run a few restaurants in Chennai. However, due to breach of terms and conditions, the franchise agreement was terminated in April 2022. Subsequently, Rasnam started operating restaurants in the same location as its restaurants with the name Geetham adopting a colour scheme similar to Sangeetha. News publications were also given that earlier Sangeetha restaurants are now Geetham prompting the petitioner to issue a legal notice.Opposing the suit, Rasnam submitted that it cannot be held liable for the news publication and that they had given advertisements in prominent newspapers that Geetham is not connected with Sangeetha in any manner. The advertisements were given in view of an order passed by a division bench. Rasnam added that the present modified mark used by them is in no way deceptive to Sangeetha. Recording the submissions, the court observed that the modified mark of Geetham is not likely to deceive or confuse a consumer of average intelligence. This should also be viewed in the context of the advertisements placed by Rasnam, clarifying that it has no connection with Sangeetha, the court said. Therefore, the court directed Geetham to pay the profits it earned before the modification of its trademark to Sangeetha.